Today’s topic: Let’s talk about the promotions mix: Advertising.
Every entrepreneur has to find effective ways to promote their business. What exactly is promotion? A promotion is an activity that communicates the merits of the product and persuades target consumers to buy it. Defining a promotion is simple enough, but spending your hard earned budget to promote your business isn’t so easy. You have to feel confident that you’re making the best decisions.
There are several types of promotions that you can focus your advertising efforts and budget on. Let’s take a look at advertising.
The most obvious member of the promotions mix is standard advertising. You can advertise your business itself; selling or promoting your corporate image. This is sometimes called advocacy advertising. This type of advertising is good for getting your name out there and getting consumers used to thinking of your company in a certain way. Maybe you have a business that sells products to moms, and you want people to perceive your business as one that cares about education, or healthy lifestyles. This is called branding. The advantage of branding is that potential customers gain product awareness and knowledge about your company, advertising is usually repetitious, and you usually achieve a wide geographic reach. If you have a tighter budget, you may choose to advertise a certain product, or category of products. This type of advertising is sometimes called product positioning. A common theme of this kind of advertising is direct competitor comparison. In your ad, you tell why you are better than one or more of your competitors. Some distribution channels for advertising are: radio, newspaper and Internet. Advertising on the Internet is a completely different genre of advertising that we will take a closer look at in the coming weeks.
The disadvantage of advertising is that there’s a high absolute (immediate and out of pocket) cost, it can seem impersonal and standardized, and it can be ignored by consumers who feel they are being inundated with advertising clutter. This is especially true in Internet advertising where the saturation level of advertising has definitely reached its peak. Note: banner advertising has dropped to nearly 10 percent of the Internet, where it used to be a major revenue generating channel.